State Pension (Non-Contributory) Contents 1. What is the State Pension (Non-Contributory)? 3 2. How do I qualify? 3 3. What is the means test? 4 4. How much can I get? 8 5. What other increases may I get? 10 6. How do I get my payment? 11 7. When and how do I apply? 12 8. What other benefits may I get? 14 9. What happens if I leave or sell my home? 15 10. What happens if I go to live outside the State? 17 11. Does payment continue after death? 18 12. Where can I get more information? 19 May 2010 Qualifying conditions for our schemes change from time to time. Always check with your local Social Welfare Office or with Information Services to see if qualifying conditions have changed (see page 19 for contact details). The information in this booklet is correct at the time of publication. This booklet is intended as a guide only, and is not a legal interpretation. 1
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State Pension (Non-Contributory) 1. What is the State Pension (Non-Contributory)? The State Pension (Non-Contributory) is a means-tested payment for people aged 66 or over who do not qualify for State Pension (Transition) or State Pension (Contributory) based on their social insurance record. You should apply for this payment 3 months before you reach age 66. 2. How do I qualify? To qualify for State Pension (Non-Contributory) you must: satisfy the Habitual Residence Condition*, live in the State while getting this pension, be aged 66 or over, have a valid Personal Public Service Number (PPS No.), and satisfy a means test. * Habitual Residence is a condition which you must satisfy to qualify for certain social welfare assistance payments and Child Benefit. This condition took effect from 1 May 2004 and affects all applicants regardless of nationality. For more information, log on to www.welfare.ie. 3
SW 116 3. What is the means test? A means test is a way of checking if you have enough means to support yourself and what amount of payment, if any, you may qualify for. Your means are any income belonging to you or your spouse or partner and property (except your own home) or an asset that could provide you with an income. You must complete the application form fully so that we can calculate your means. You must give all details of your own means and those of your spouse or partner where applicable. You should submit all necessary documents such as bank statements, details of all your earnings or other pension payslips with your application. If you submit an incomplete application form or if you don t submit the required supporting documents a decision on your application may be delayed or result in your pension being refused. Your claim for pension may be forwarded to a local Social Welfare Inspector for investigation and interview. 4 What counts as means? The main items that count are: cash income belonging to you or your spouse or partner, the value of any investments, savings and shares that you may have, the value of any property, except your own home, maintenance paid to you if you are deserted or separated, and income from employment or self-employment. A disregard of earnings from employment of 200 a week applies to both you and your spouse or partner, where applicable. However, this disregard does not apply to earnings from self-employment,
State Pension (Non-Contributory) If you are married or you are living with someone as husband and wife, we will include the means of your spouse or partner in the means test. If you own or lease a farm of land, we assess as means the yearly value of any income that you or your spouse or partner have from it. We work out the yearly value by deducting any necessary expenses from the gross income. If you or your spouse or partner deprive yourselves of an income or property (including money) to qualify for State Pension (Non-Contributory) or to qualify for this pension at a higher rate, we will include that income or property in the means test. However, this may not apply in the case of certain family settlements involving the transfer of ownership of a farm. Note If you are married or are cohabiting with another person as husband and wife, your means will be calculated as half the joint means of you and your spouse or partner. How do you assess capital? Capital refers to savings, investments, shares, cash-on-hand and the value of property (except your own home). When working out your means from capital, we use a special formula to work out your means: This formula is used: Capital: Weekly means assessed: First 20,000 Nil 20,000-30,000 1 per 1,000 30,000-40,000 2 per Ä 1,000 Over 40,000 4 per 1,000 5
SW 116 Example 1 A single person has 45,800 savings and no other means. Amount of savings 45,800 Minus first 20,000 (disregarded) 20,000 25,800 Balance of 25,800 is assessed as follows: 10,000 is assessed at 1 per 1,000 10.00 10,000 is assessed at 2 per 1,000 20.00 5,000 is assessed at 4 per 1,000 20.00 The balance of 800 is not assessed as it is less than 1,000. Weekly means 50.00 Weekly State Pension (Non-Contributory) in 2010: 199.00 Example 2 A married person with a qualified adult* under 66, has 100,800 joint savings and no other means. * See page 9 for details of a qualified adult. Amount of joint savings 100,800 Assessable savings (half of joint savings) 50,400 6 This is assessed as follows: Assessable savings 50,400 Minus first 20,000 (disregarded) - 20,000 30,400 Balance of 30,400 is assessed as follows: 10,000 is assessed at 1 per 1,000 10.00 10,000 is assessed at 2 per 1,000 20.00 10,000 is assessed at 4 per 1,000 40.00 The balance of 400 is not assessed as it is less than 1,000 Weekly means for each person 70.00
State Pension (Non-Contributory) Weekly State Pension (Non-Contributory) (January 2010 rates) Personal Rate 179.00 Increase for Qualified Adult under 66* 118.30 Total 297.30 If each of the couple in example 2 were aged 66 or over, both of them would each qualify for a weekly pension of 179. (January 2010 rates) Note If you qualify for State Pension (Non-Contributory), the rate of payment you receive will be set at a level that should enable you to have an adequate standard of living. The Department would expect you to spend all or most of your pension each week in meeting your normal day-to-day living expenses. However, if you choose to save part of your pension, those savings will be means-tested in the same way as savings from any other source (for example, from earnings, from an occupational pension or from an inheritance). Depending on the amount of savings you accumulate from all sources, this could result in a reduction in (or withdrawal of) your State Pension (Non-Contributory). What does not count as means? The following are some of the main items that do not count as means: your own home, any payment made by the Department of Social Protection, 7
SW 116 the first 200 of weekly earnings from employment, but not self employment. A similar earnings disregard from employment, but not self employment of 200 a week will also apply to your spouse or partner, any expenses you necessarily incur in carrying on any form of self-employment, Foster Care Allowance from the Health Service Executive, contributions to Personal Retirement Savings Account(s), certain payments from the Health Service Executive and income from certain charities. EU Early Retirement Scheme from Farming We also ignore any payments you receive from the Department of Agriculture and Food under the EU Early Retirement Scheme from Farming. However, that Department may reduce your pension under that scheme by the amount of State Pension (Non-Contributory) that you get. Rental Income If a person is living with you and pays you rent, we will not count the rent as means if you would otherwise live alone. 4. How much can I get? The pension is made up of a personal rate for you and extra amounts for a qualified adult and child(ren). You will get the maximum personal rate of State Pension (Non-Contributory) if your weekly means are 30 or less. 8
State Pension (Non-Contributory) Who is a qualified adult? In general, a qualified adult is your spouse or someone you are living with as husband and wife. You may get an increase in pension for them as long as they are not getting a social welfare payment in their own right, except Carer s Allowance (where special arrangements apply). The Increase for a Qualified Adult is graduated in line with your personal rate of pension. For more information, log on to www.welfare.ie. Note Since September 2007, by law we pay the increase for a qualified adult directly to the spouse or partner concerned unless they specify that it can be paid to you. Note If you are awarded an increase for a qualified adult (IQA), please keep in mind that your qualified adult may be entitled to claim a State Pension (Non- Contributory) in their own right on reaching age 66. On reaching age 66 the increase for a qualified adult will automatically cease and they will be invited to apply for State Pension in their own right. It should be noted that it will be more financially beneficial to you as a couple if each of you receives a pension in your own right. Alternatively, if your spouse or partner has been employed or self-employed, they may qualify for either a State Pension (Transition) at age 65 or a State Pension (Contributory) at age 66. For more information, log on to www.welfare.ie. 9
SW 116 Who is a qualified child? A qualified child is any child up to age 18, who normally lives with and is being supported by you, or up to age 22 if they are in full-time education by day. A child who is age 18 or over and is normally living with you is also considered your qualified child for the 3 month period after they leave second level education or complete the Leaving Certificate exam. If you qualify for an increase for your spouse or partner, you will get the full rate Qualified Child Increase for your qualified child(ren). If you do not qualify for an increase for your spouse or partner, you will get half the Qualified Child Increase for your qualified child(ren). If your spouse or partner is getting a social welfare payment in their own right, they will get half the Qualified Child Increase appropriate to their payment and you will get half the Qualified Child Increase on your pension. You cannot get a Qualified Child Increase if the child is getting a social welfare payment in their own right. 5. What other increases may I get? You may be entitled to extra weekly increase(s) along with your basic State Pension (Non-Contributory) weekly as follows: Over 80 Allowance You will get this allowance automatically at age 80. Please note this allowance is not payable on the increase for a qualified adult. 10
State Pension (Non-Contributory) Island Allowance You may get an Island Allowance if you live on an offshore island off the Republic of Ireland subject to certain conditions. For more information, log on to www.welfare.ie. Fuel Allowance You may get Fuel Allowance, from September to May, subject to certain conditions. These conditions include that you live alone or with certain specified persons. For more information, log on to www.welfare.ie. Living Alone Increase You may be entitled to the Living Alone Increase if you live alone or mainly alone. For more information, log on to www.welfare.ie. 6. How do I get my payment? State Pension (Non-Contributory) can be paid weekly: at your local post office by social services card, or by direct payment into your account in a financial institution. This account must be a current, deposit or savings account. 11
SW 116 7. When and how do I apply? You should apply for State Pension (Non-Contributory) 3 months before reaching age 66. If you are awarded a pension it will be paid from the Friday following your 66 th birthday or the Friday following the date of receipt of your application. Note A late claim could result in a loss of payment. To apply, complete the enclosed application form (SPNC1), and send it with all necessary documents such as bank statements, pension payslips and correct certificates to: State Pension (Non-Contributory) Section Social Welfare Services College Road Sligo LoCall: 1890 500 000 (from the Republic of Ireland only) + 353 71 9157100 (from Northern Ireland or overseas) Personal Public Service Number (PPS Number) You must give your PPS Number and the PPS Number of your spouse or partner. You must also give us the PPS Number(s) for any child(ren) for whom you intend to claim a payment. If you do not know these numbers, please contact your local Social Welfare Office. They will let you know your PPS number. If you do not have one they will let you know what you have to do to get one. For more information, log on to www.welfare.ie. 12
State Pension (Non-Contributory) Certificates to send with your application When you apply for State Pension (Non-Contributory) you may need to send us in certificates if the birth(s) or marriage took place outside the Republic of Ireland, such as: your birth certificate, your spouse or partner's birth certificate, your marriage certificate, your qualified child(ren) s birth certificate(s). Note: No birth certificate is needed if you are already getting Child Benefit for these children. We do not accept photocopies of certificates. If you are not able to get the certificate(s) immediately, you should send in your pension application form with a note stating that you will send the certificate(s) as soon as possible. If you are sending in your certificates at a later date, please ensure that you quote your pension claim number. You will get this number automatically when we receive your application. Note Please send in a letter from a school or college if you are claiming for a qualified child, aged 18-22 in fulltime education. 13
SW 116 Late applications Please apply for your pension on time. If you make a late application you could lose some payment. However, we may backdate the award of the pension for up to 6 months before the date you applied if you have a valid reason for the delay. In certain exceptional cases we may backdate the pension for periods greater than 6 months as follows: you failed to apply in time because of incorrect information given to you by our staff, you were so incapacitated that you were unable to make a claim or appoint someone to act on your behalf, you experienced a force majeure - extreme events or actions that prevented you from applying on time, or you are currently having financial problems. In all cases where we consider making a backdated payment, we must also be satisfied that your means entitled you to the payment for that time. If you think that you may qualify for a backdated payment under any of the circumstances outlined above, please send us the details and any supporting documents. 8. What other benefits may I get? Free Travel If you live permanently in the State you will qualify for a Free Travel Pass. The All-Ireland Free Travel Scheme will entitle you to travel for free on transport services operating within Northern Ireland, using a Senior Smartpass card. For more information, log on to www.welfare.ie. 14
State Pension (Non-Contributory) Household Benefits Package You may, subject to certain conditions, also qualify for: Electricity, Natural Gas or Bottled Gas Refill Allowance, Free Television Licence, Telephone Allowance for either a landline or a mobile phone. For more information, log on to www.welfare.ie. Carer s Allowance and Carer s Benefit A person may get Carer s Allowance or Carer s Benefit to look after you if you need full-time care and attention. Note Since September 2007 it may be possible to get a half rate Carer s Allowance in addition to getting a State Pension (Non-Contributory) in your own right or if someone else is getting an increase for a qualified adult for you. 9. What happens if I leave or sell my home? Leaving your home If, due to old age or infirmity, you leave your home for either a short time or indefinitely, the value of your home will not be assessed as means. However, if it is put to profitable use, for example rented out, the capital value of your house will then be assessed as means. If you put your house up for sale, we do not assess the value of that home for up to 2 years from the date it was put up for sale. 15
SW 116 However, if the property is sold within the two years, we will assess the income from the sale as means at that stage. Selling your home If you are living in accommodation that no longer suits you or that is too difficult for you to maintain, you may sell your home and move to more suitable accommodation. In certain cases, we may ignore the proceeds of the sale of your home, up to a limit ofä 190,500, when we assess your means. If you are living in a premises that is split between a living area and a business area, we will only exempt the proceeds of the sale up to 190,500 that relate to the living area. When does the exemption apply? The exemption applies if you sell your home and you either: buy other accommodation, or rent other accommodation, or move into a private nursing home that is registered under the 1990 Health (Nursing Homes) Act, or move in with a person who is caring for you and is getting Carer s Benefit or Carer s Allowance, or move to special or sheltered housing in the voluntary, co-operative, statutory or private sector. What happens if I buy more suitable accommodation? If you sell your home and buy more suitable accommodation, the balance of the sale proceeds from your old home is exempted up to a limit of 190,500. 16
State Pension (Non-Contributory) Example 1 If you sell your home for 320,000 and buy alternative accommodation for 250,000, the balance of 70,000 is not counted as means as it is less than the limit of 190,500. Example 2 If you sell your home for 450,000 and buy alternative accommodation for 220,000, the difference is 230,000. The first 190,500 is disregarded and the remainder 39,500 is assessed as means using the capital assessment formula. What happens if I move into a private nursing home? If you sell your home and move into a private nursing home that is registered under the 1990 Health (Nursing Homes) Act, the proceeds of the sale of your old home is exempted up to a limit of 190,500. Example If you sell your home for 250,000 and move into a private nursing home, 190,500 is not counted as means. Only the difference between these amounts ( 59,500) will be taken into account when working out your weekly means. 10. What happens if I go to live outside the State? State Pension (Non-Contributory) is not normally paid if you live outside the Republic of Ireland. However, if you are getting this pension, you may continue to get it for up to 5 years in Northern Ireland, or until you get a similar payment from the relevant authority there, if sooner. 17
SW 116 If you leave the Republic of Ireland for any other reason, please tell us immediately. 11. Does payment continue after death? Death of a pensioner If you die, payment of your pension will continue for 6 weeks to your spouse or partner. Death of your spouse or partner If your spouse or partner dies, payment for them will continue for 6 weeks if your payment included an increase for them (or would have done except that they were getting another social welfare payment in their own right). Death of a qualified child Payment for a qualified child will continue for 6 weeks after their death. Bereavement Grant A Bereavement Grant may be payable if you or a member of your family dies. This is based on the social insurance record of the deceased person or their spouse. For more information, log on to www.welfare.ie. 18
State Pension (Non-Contributory) 12. Where can I get more information? For more information on State Pension (Non-Contributory), contact your local Social Welfare Office or State Pension (Non-Contributory) Section at the address on page 12. For information booklets, application forms and more information on social welfare services: Log on to www.welfare.ie. Text to 51909 (see details on Page 20). LoCall Information Line at 1890 66 22 44 (from the Republic of Ireland only) or +353 71 91 93313 (from Northern Ireland or overseas). Drop in to your local Social Welfare Office or Citizens Information Centre. Note The rates charged for using 1890 (LoCall) numbers may vary among different service providers. 19
SW 116 To request forms, text the form code followed by your name and address to 51909 (from the Republic of Ireland only). Standard text rates apply. For example, if you wanted to request the Bereavement Grant form, text form bg Mary Murphy 1 New Street, Old Town, Co. Donegal. Social welfare payment or scheme Form code Back to School Clothing and Footwear Allowance FORM BTSCFA Bereavement Grant FORM BG Carer s Allowance FORM CARA Carer s Benefit FORM CARB Child Benefit (Form CB1) FORM CHILD Disability Allowance FORM DA Domiciliary Care Allowance FORM DCA Family Income Supplement FORM FIS Free Travel FORM TRAVEL Fuel Allowance FORM FUEL Household Benefits FORM HHB Invalidity Pension FORM INV Living Alone Increase FORM LAA Maternity Benefit FORM MAT One Parent Family Payment FORM OPFP Respite Care Grant FORM RCG State Pension (Non-Contributory) FORM SPNC State Pension (Transition/Contributory) FORM SPC Widow(er) s Contributory Pension FORM WCP Widow(er) s Non-Contributory Pension FORM WNCP 20
State Pension (Non-Contributory) Other useful booklets: Checklist for Pensioners SW 10 National Fuel Scheme SW 17 Rates of Payment booklet SW 19 Living Alone Increase SW 36 Free Travel SW 40 Carer s Allowance SW 41 Bereavement Grant SW 47 Carer s Benefit SW 49 Pensioners and Savings SW 60 Household Benefits Package SW 107 Habitual Residence Condition SW 108 State Pension (Transition) and State Pension (Contributory) SW 118 21
SW 116 The Citizens Information Board is the statutory body which supports the provision of information, advice and advocacy on the broad range of social and civil services to the public. It provides the Citizens Information website and supports the voluntary network of Citizens Information Services and the Citizens Information Phone Service. www.citizensinformation.ie Lo-Call 1890 777 121 (Mon-Fri 9am-9pm) Local Centres (see Golden Pages) Citizen Information is available from over 250 locations nationwide. The contact details and opening hours of your nearest Citizens Information Centre are listed in the Golden Pages. 22